Company

Petronet LNG Limited, one of the fastest
growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej,
Gujarat, and another terminal at Kochi, Kerala. While the Dahej terminal has a nominal capacity of 15 MMTPA,
the Kochi terminal has a capacity of 5 MMTPA.

Natural Gas

Natural Gas consists mainly of Methane and small amounts of ethane, propane and butane. It is transported through pipelines but is extremely bulky. A high-pressure gas pipeline can transport in a day only about one-fifth of the energy that can be transported through an oil pipeline.

Terminals

The Company has set up South East Asia's first LNG Receiving and Regasification Terminal with an original nameplate capacity of 5 MMTPA at Dahej, Gujarat. The infrastructure was developed in the shortest possible time and at a benchmark cost. The capacity of the terminal has been expanded to 10 MMTPA and the same has been commissioned in June, 2009. The expansion involved construction of 2 additional LNG storage tanks and other vaporization facilities. The terminal is meeting around 20% of the total gas demand of the country.

CSR

Petronet LNG, as responsible Corporate/Community/Government Citizens, undertake Socio-Economic Development Programme
to supplement the efforts to meet priority needs of the community with the aim to help them become self-reliant.
These efforts would be generally around our work centres mostly in the areas of Education, Civil Infrastructure,
Healthcare, Sports & Culture, Entrepreneurship in the Community. Petronet LNG also support Water Management and
Disaster Relief in the country thereby help to bolster its image with key stakeholders.

Media Centre

Four of the top public sector companies of the country's Hydrocarbon Sector viz. Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited (GAIL) have invested in Petronet LNG. Each has a 12.5% equity share, leading to a total of 50% for the four.

Four of the top public sector companies of the country's Hydrocarbon Sector viz. Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited (GAIL) have invested in Petronet LNG. Each has a 12.5% equity share, leading to a total of 50% for the four.

Petronet LNG, a private entity promoted by stateowned oil firms for importing gas in ships, recorded a net profit after tax of Rs 108 crore on a turnover of Rs 1,562 crore during the first quarter of the current fiscal. This marks a 90% increase in net profit and 52% growth in turnover over the previous corresponding quarter.

During the quarter under review, the company processed and sold 78.62 TBTUs against 66.35 TBTUs in last quarter ending June 30, 2006, achieving a 130% capacity utilisation.

Petronet managing director P Dasgupta stated that the company had entered into a term contract for sourcing additional 1.25 million tonne of liquefied natural gas with RasGas of Qatar on July 3. This additional gas will be used to supply fuel from Dahej terminal to Ratnagiri Gas & Power Pvt Ltd?s Dabhol power project.

Dasgupta also informed that Dahej terminal?s capacity would progressively be increased to 10 million tonnes per annum between July 2008 and January 2009 as per schedule. The work on the greenfield terminal at Kochi has already commenced and would be completed in the first quarter of 2011.

The EPC contract for the project will include putting up regassification facilities to handle imports of 2.5 million tonnes per annum of LNG and the jetty and related marine facilities capable of handling 5 million tonnes per annum of gas cargo.

The scope of work will also include two storage tanks, each with a capacity of about 150,000 cubic metres. The import terminal that will be built on Puthuvypeen island had earlier been scheduled for completion in 2009, and due to receive its initial LNG imports by 2010 at the latest. Petronet is in talks to import LNG from the Chevron-operated Gorgon liquefaction project in Australia. Volumes are expected to come from the 25% capacity share being marketed by partner ExxonMobil.

Petronet is expecting a 50% cost escalation of its Kochi project as it gets ready to sign the LNG supply contract with Gorgon project in Australia.The need for a deeper pile work because of unstable soil and rising price of nickel to be used inside the storage tanks will push up the project cost by nearly Rs 1,000 crore to Rs 3,000 crore.

After concluding all commercial negotiations, Petronet is discussing the draft sales purchase agreement for supply of 2.5 million tonnes of LNG from Gorgon for 25 years. As per the price averaging system approved by the Centre, Petronet expects to deliver LNG at $5.75 per mbtu (million British thermal unit) to all its consumers in the country.

The price has been arrived at after factoring in the possibility of availability of gas from Krishna-Godavari belt in the southern states. With uniform price the existing consumers of its Dahej project will have to share the price burden of supply of LNG from new sources under this system.